e activity-based factory overhead per unit f
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Valhalla Company manufactures small table lamps and desk lamps. The following shows the activities per product:
Units
Setups
Inspections Assembly (dih)
Small table lamps
8,000
10,000
32,000
8,000
Desk lamps
16,000
30,000
14,000
46,000
Use the following information prepared by Valhalla Company.
Total
Budgeted
Activity
Activity-Base
Usage
Activity
Cost
Setups
40,000
$160,000
Inspections
46,000
230,000
Assembly (dlh)
54,000
324,000
a. Determine the activity rates for each activity.
Setups
per setup
Inspections
per inspection
Assembly
per DLH
b. Determine the activity-based factory overhead per unit for each product. Round your answers to two decimal places, if necessary.
Small table lamp
Desk lamp
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